Africa Newsletter 06-19-20

East Africa Update

Kenya Maize Price Falls

The maize price in Kenya has reduced to KES 3,100 per 90 kg bag in the Nairobi area due to fear of high aflatoxin levels in cheaper maize and as a result millers have rejected a number of parcels. This has seen a lower demand maize flour even after millers have reduced the retail price for consumers.

Business Daily reports on how the maize price was quoted as high as KES 3,500 per 90 kg bag last month and now even with the lower price challenges of quality remain an issue for millers. Requests to regulators have been to oversee the quality testing from origin and even more monitoring as cargo is delivered to Kenya as more suppliers have become unreliable on the required quality standards.

Tanzania and Kenya Agree To End Trade Spat

Tanzania and Kenya have reached an agreement to continue smooth trade across their borders after a period of disagreements which led to the halt of some cargo trucks. The two countries have agreed to have testing undertaken for drivers at the common borders and that certificates are issued for those drivers that are free of the coronavirus.

According to The Citizen, drivers will undergo testing then be released for their journey while following the strict health guidelines and upon their return the drivers will collect their test results and return home. This is a measure that will not deny any drivers entry to either countries and should speed up the process of of crossing the border.

Uganda And Rwanda Imports Drop

Uganda has seen a fall in imports at Malaba of 35%. Busia 28% and Entebbe 24% according to COMESA Statistics on Covid-19 Impact on Trade. On average Malaba has seen the reduction of trucks importing goods to 750 and Busia 350 but before the pandemic Malaba alone saw over 900 trucks per day.

According to The Monitor, Rwanda also saw a decline in imports of 32% in April compared to March while Rusumo border post, neighbouring Tanzania, saw a decline of 35% and the airport 16%.

African Free Trade Zone Launch Moved To January Over Pandemic Lockdowns

The start of the trade under the African Continental Free Trade Agreement (AfCFTA) will be at a tentative date of January 2021 due to the coronavirus outbreak as the original date of 1st July was not practical.

Currently, 42 of the 55 African Union members are under some sort of lockdown, travel restriction or delays at border crossings.

For updates on restarting the global trade please see our report Hot Commodities at panxchange.com/hot-commodities